JICA grants ODA for infrastructure in Viet Nam's Northern highlands

On May 1 in Hanoi, the Japan International Cooperation Agency (JICA) and the Government of the Socialist Republic of Viet Nam signed ODA loan agreements from the Government of Japan to support two small-scale infrastructure development projects in Viet Nam's Northern midland and mountainous regions.

The signing and exchange of documents were carried out between representatives of the Ministry of Finance of the Socialist Republic of Viet Nam - represented by Tran Quoc Phuong, Deputy Minister of Finance, and Kobayashi Yosuke - Chief Representative of the JICA Viet Nam Office.

Through these loans, JICA supports Viet Nam in enhancing resilience to climate change and natural disasters, improving livelihoods for people in disadvantaged areas, and helping to narrow regional development gaps.

Disaster-Resilient Rural Development Project

The project will be implemented in Lao Cai, Dien Bien, Tuyen Quang, Son La, and Lai Chau provinces.

Its objective is to strengthen resilience to climate change and natural disasters, while improving livelihoods and living conditions for local communities through the development and upgrading of small-scale infrastructure. Project activities focus on improving transport access, enhancing agricultural productivity, and reducing disaster-related losses in areas with high poverty rates and vulnerability.

Key components of the project include the construction and rehabilitation of around 90 subprojects, covering transport infrastructure, irrigation systems, and riverbank protection works, along with consulting services such as detailed engineering design, construction supervision, environmental monitoring, progress reporting, and audit reporting.

The maximum loan amount for the Project is JPY 21,590 million, with an interest rate of 2.25% per year, a repayment period of 30 years, including a 10-year grace period. Procurement under the Project will be untied.

The Project is managed by the People’s Committees of the participating provinces, with local ODA Project Management Units serving as implementing agencies. It is expected to be completed by October 2030, when all subprojects are put into operation.

Climate-Resilient Infrastructure Development Project to support production for ethnic minority communities in Northern midland and mountainous provinces

This project will be implemented in Tuyen Quang, Thai Nguyen, Lang Son, and Cao Bang provinces.

Its objective is to improve living conditions, support production, and enhance climate resilience in areas with large ethnic minority populations, through the development of essential small-scale infrastructure in transport, irrigation, and water supply.

The project includes 28 subprojects, focusing on improving access to public services and markets, increasing agricultural productivity, and strengthening clean water supply and sanitation capacity for local communities.

The maximum loan amount for this Project is JPY 17,666 million, with an interest rate of 2.30% per year, a 30-year loan term, including a 10-year grace period, and also applies untied procurement.

The People’s Committees of the relevant provinces act as the project owners, while local ODA Project Management Units are responsible for implementation. The project is expected to be completed by December 2030.

These two projects are expected to contribute to the achievement of the United Nations Sustainable Development Goals (SDGs), including poverty reduction, food security, improved health and well-being, reduced inequalities, and strengthened climate resilience in Viet Nam.

$ 1 = JPY 157 - Source: Vietcombank.